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2023 (3) TMI 203 - AT - Income TaxReopening of assessment u/s 147 - reason to believe - fresh or intangible material - addition on account of amount paid by the assessee towards release of lease tenancy - HELD THAT:- From the very reasons recorded, it is clear that the Assessing Officer has simplicitor gone into assessment records and whatever information filed during assessment proceedings, the Assessing Officer has made basis for reopening of assessment. Admittedly original assessment was completed u/s.143(3) of the Act and the Assessing Officer has examined issue of lease rights release of Rs.18.00 lakhs. I find that this issue has been considered by the Assessing Officer in the original assessment and relevant para 6 of assessment order is already re-produced above in para 8 of this order. Hon'ble Madras High Court in the case of TANMAC India Vs. DCIT (2017 (1) TMI 122 - MADRAS HIGH COURT] has considered this issue in detail and noted that reassessment can be done only on the fresh and tangible material. The Hon'ble Supreme Court in the case of CIT Vs. Kelvinator of India (supra) has also considered an identical issue and held that Department cannot be permitted to avail of extended time limit, in absence of any new or tangible material. No counter judgement was cited by the Department except case law of the Hon'ble Supreme Court in the case of CIT Vs. P.V.S.Beedies Pvt.Ltd. [1997 (10) TMI 5 - SUPREME COURT] wherein the issue of audit objection how to be dealt with and whether that forms opinion or not is to be considered. Since, the Hon'ble Supreme Court in the case of CIT vs. Kelvinator of India [2010 (1) TMI 11 - SUPREME COURT] has considered this issue, reopening on the same set of facts, which were available in the original assessment proceedings which were examined by the Assessing Officer, is bad in law and hence, quashed - Appeal of the assessee is allowed.
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